Wednesday, September 21, 2011

But there was much that the Fed didn’t do. It didn’t release a statement saying it would swing its policy toward lowering the unemployment rate. It didn’t say it would strive for a period of catch-up inflation, nor that it would stop paying interest on bank reserves. It didn’t, in other words, really try anything it wasn’t already trying, and as such, there’s no reason to think the effect will be anything but modest.